The Grounds Real Estate Development AG: The building development plan for the planned urban district on the former Börde brewery site will be finalised by Q1 2020
Berlin, 24 May 2019. The planning phase for the project development in Magdeburg initiated by The Grounds Real Estate Development AG (ISIN DE000A2GSVV5) in the 2018 financial year is largely complete. As things stand at present, the building development plan for the planned urban district on the site of the former Börde brewery will be finalised by the first quarter of 2020 at the latest. By the time the plan is adopted, The Grounds expects investment costs of approx. EUR 10 million, including the purchase price. The Grounds is already working in parallel at top speed to prepare building applications for the individual construction areas. The submission of initial individual building permit applications is scheduled for the first quarter of 2020.
The Grounds signed the purchase contract for the 38,200 m² site near the city centre in mid-May 2018. The planned total gross floor area amounts to 63,344 m², spread over 750 residential units. An extended stay apartment block, several multi-family dwellings and sheltered housing will be constructed.
Magdeburg, the capital city of the federal state of Sachsen-Anhalt, is one of Eastern Germany’s most attractive real estate property locations. The volume of residential and commercial investment transactions in Magdeburg in 2018 amounted to EUR 390 million, thus representing the second largest achievement in the past 20 years. A new record value of EUR 157 million was attained in the residential sector at the same time. The gross return of 6.3% in 2018 is also considerable when compared to the whole of the German Federal Republic (Duisburg is the front runner: 6.7%). The average rental price for newly-built single-floor apartments rose in 2018 by almost 10% to 8.65 EUR/m², and a price per square metre of up to EUR 13 was achieved in a city location. With its large-volume project developments in Magdeburg, The Grounds Real Estate Development AG is among the region’s strongest investors, thus participating successfully in the city’s upward trend.
The Grounds Real Estate Development AG
Management Board Chairman
Leipziger Platz 3, 10117 Berlin
T. +49 (0) 30 2021 6866
F. +49 (0) 30 2021 6849
Haus der Wirtschaft, Kapstadtring 10
T. +49 (0) 40 6378 5410
F. +49 (0) 40 6378 5423
Acquisition, project development and sustainable residential property management
The Grounds Group focuses on buying and developing residential property and, as a full-service provider for the business areas Investment (including property and asset management), Development and Trading, they have made it their goal to provide affordable living space for different life stages. The emphasis is on residential property, particularly also special real estate such as student and retirement living in German metropolitan regions and attractive locations such as aspiring outskirts in Germany. As a portfolio holder their medium-term aim is to establish a significant high quality real estate portfolio at a magnitude of EUR 500 million through investments and in-house development, allowing stable profits together with attractive dividend payments to The Grounds shareholders. The Grounds seeks to position themselves as one of the leading German real estate companies by creating added value within the scope of housing development and subsequent development of market capitalisation.